(To read more on the multifamily market, click here.)
NEW YORK CITY-To take advantage of the strong condo market here, Broad Street Development secures $105.1 million to go toward the acquisition and conversion of 1430 and 1438 Third Ave. The buildings, located between 81st and 82nd streets, total 168 units.
The 21-unit 1430 Third has 52% of its units under rent control and will not be converted to condos. Currently, 1438 Third is a 31-story, 147-unit residential building with 14,000 sf of ground-floor retail space. After the conversion, it will have 47 one-bedroom and 40 two-bedroom units.
The local office of Holliday Fenoglio Fowler secured the financing package. HFF senior managing director Mike Tepedino placed a floating-rate loan with AIG GlobalInvestment Corp. and Lehman Brothers provided the equity for the project. He calls the site a "perfect candidate" for conversion due to its location, views and because nearly all of the units have one and a half or two baths.
In related news, Pitcairn Properties, has placed the Magellan, a 35-story, 168-unit apartment building in East Chelsea on the market. The firm gave the exclusive marketing effort to HFF. Located at 35 West 33rd Street between Fifth Avenue and Ave. of the Americas, it has studio, one- and two-bedroom units averaging 633 sf, plus 980 sf of rentable retail and a 52-space parking garage. It is fully occupied at rents in excess of $60 per sf. According to an HFF spokesperson, the current owners have had the building in its portfolio since 1998 and its "just time to move on because their investment focus has changed."
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